It makes sense that your reticence about selling your company is on par with sending your first child into the world on her own: You’ve invested a lifetime’s worth of blood, sweat, and tears into your transportation company. Never mind your life’s savings. You don’t want to wait until you have to sell, but at the same time, you’re not sure you’re ready quite yet. There are certainly down sides to waiting too long as well as selling too soon. If you’re not sure if you’re prepared to put your transportation business on the market, you can evaluate your situation based on these four readiness signs.
Sign 1: Your Business Is Getting Too Big.
For many business owners, it’s a dream come true: Your business is growing by leaps and bounds. For you, however, it’s just plain overwhelming. The growing pains that come with a major expansion are simply too much for you. After all the time, money, and energy you’ve put into your business already, why not move aside and let another entrepreneur take the reins? You may be rewarded far more than you dreamed, allowing you to sit back and bask in the glory of your business’s success.
Sign 2: You Don’t Need To Sell Your Business.
Often, transportation business owners put their businesses on the market due to financial difficulties, burnout, or owner disputes. Such desperate circumstances put them at risk for receiving less than their business may be truly worth. By being proactive and developing an exit strategy before you need to sell your business, you’ll be in a great bargaining position. By evaluating both your personal goals and your company’s performance regularly, you avoid the need to settle for second best, when you are forced to sell.
Sign 3: Your Business Is Going Well.
Maybe you don’t think your business has reached its full potential; that’s okay. If it’s operating smoothly, it may hold more value than you think—to the right buyer. If you as the owner are micromanaging every aspect of the business, then your smoothly running business won’t be as likely to continue smoothly running in the capable hands of another leader; however, if you have built a strong management team, effectively trained your staff, and kept documentation organized, you’ll be likely to attract buyers willing to pay a premium price.
Sign 4: You’re prepared to let your business go.
In a way, you may feel like you’re abandoning your own child, but you’re ready to let go and pursue other interests. That’s okay. If the passion that once fueled your business performance has dwindled, it won’t be long before your business value reflects your decreased enthusiasm. If you constantly find yourself dreaming of travels, hobbies, or a new business niche, then it’s time to look at selling your transportation business.
For help in developing an effective exit strategy and putting your transportation business on the market, contact industry leaders at the Tenney Group. Learn more by going to their website at TheTenneyGroup.com.